Sussexes’ Archewell charity could be suspended over late tax returns
The Duke and Duchess of Sussex’s Archewell Foundation has been warned that it could be subjected to fines or suspended from the charity register.
The “delinquency notice” sent by California’s attorney general on May 3, suggests that Archewell did not file its 2022 tax return or related fees on time.
It states: “The above captioned entity is listed as delinquent with the Registry of Charities and Fundraisers for failing to submit required annual report(s) and/or renewal fees.
“An organisation that is listed as delinquent is not in good standing and is prohibited from engaging in conduct for which registration is required, including soliciting or disbursing charitable funds.”
The Telegraph understands that although Archewell did file the relevant documents on time, a cheque sent for the money owed never arrived.
The Sussexes’ team was not aware the cheque had been lost until it received the notice, dated May 3.
It has now sent another cheque and expects the matter to be rectified in a matter of days.
Archewell was urged to send all relevant reports and fees “immediately” in order to avoid “further adverse actions”.
The notice, from California’s Department of Justice, says: “The organisation may also be subject to penalties and its registration may be suspended or revoked by the Registry. Once you submit the delinquent record(s), you will be notified of the amount of any late fees that are owed.”
Last year, the Inland Revenue Service postponed tax deadlines for most individuals and businesses based in California due to the severe storms, flooding and landslides the previous winter, giving them until mid-November last year.
Archewell’s 2021 filing, filed last February, revealed that the Duke and Duchess had raised $13million (£10.3million) from wealthy benefactors and $4,500 in public donations as initial start-up revenue.
The bulk of its income, $10million, came from one individual donor. The document said Archewell had given out $3million in grants.
A 2022 tax filing was filed last year and has been published online. The document suggests that Archewell suffered an $11million drop in donations on the previous year, with total revenue listed at just over $2million.
The tax return shows that the foundation spent more than it received in 2022, resulting in a deficit of $674,000. However, it maintained assets of some $8.5million.
Archewell employed five people, with salaries totalling $640,441 for the year. Harry and Meghan did not take a salary.
